I never short shares and have not shorted this share. However I hate to see shareholder abuse - all too frequent on AIM. An even greater example of shareholder abuse has been with AAOG (also O&G) - was over 20p, now about 2.5p due to an appallingly bad management team that has merrily led investors down a dark and endless path of incompetence, lies and dilution. Despite the fall, the board there STILL has its resident rampers daily pumping the share as a great investment.
Irrespective of one's opinions on renewables, did the company (sorry, shareholders) really have to buy THAT farm? A 10 minute search on the internet shows you better deals. If the same shareholders who paid for the 'asset' through dilution had been asked beforehand, do you think they would have agreed to this bizarre purchase?
Neil, from your comments I suspect that you have bet your own farm on PMG (sheep included) - it might work out, but rest assured that for every pound you get management will get 1,000.
In any case, I can't wait for the next published set of financial statements - front cover a picture of TC with beard and shaggy jacket holding a sheep; lyrics of Mull of Kintyre on the inside; and an article included on the benefits of veganism by TC's wife.
ROFL, Neil? Only because I have not lost money on this investment.
The farm purchase is ROFL and indicates management's arrogance, lack of concern wrt the well-being of shareholders and an absolute lack of integrity. The amount involved is relatively small, but untrustworthy in small matters = untrustworthy in big matters. The management team (and family....) has AIM written all over it.
"What's not to like......"? Let's start with a share price down almost 50% from one year highs; the dubious purchase of assets from family (.....) members paid for directly by shareholders via dilution, indicating management's absolute distain for LTH's; and a management team that has milked the company for years while investors have got nothing.
The more I look into this company, the worse the shareholder abuse gets. The share price might go up - but that will be in spite of, rather than because of, management. Good luck.
A lot of AIM companies are set up almost purely for the benefit of managememt and directors, especially in the O&G and mining sectors. The company is established using mostly third party funding and continues for as long as it can, allowing management and directors pull out enormous remuneration packages to the end. And just in case the company happens to be successful, they also award themselves gigantic amounts of warrants and other share-based bonuses. See the PMG financial statements for a good example of the latter. These companies are also charactorised by share issue and dilutions, thereby pulling more cash and/or assets in at no cost to the company - paid for by new shareholders at a cost to old shareholders who see the value of their shareholding diminish. Dividends are rarely paid by these companies as, reducing the amount of funding available for management to extract, they are considered wasteful.
There are countless examples of such companies on AIM, with PMG being an extreme case - as shown recently by the purchase of Cross' wife's farm (.........) by the company, paid for entirely by existing shareholders.
Of course, the share price of such companies CAN move up as shown today, so that both shareholders and management benefit - however prior to today, the share price of PMG has halved while management and directors continue to extract their enormous remuneration packages. While taking courses in sheep farming.
I don't care if he is Chinua Achebe (although in that case I would have hoped his spelling would be a bit better) - he tells it as it is for SLE. And as the SP burns below 26p, OF plays the fiddle in his palatial apartment in London (rented out to SLE at inflated rates of course, like a good Nigerian).
TC is certainly NOT a 'one trick pony':
- largest SH, effectively allowing him run his company as he wishes;
- enormous remuneration package that has seen him withdraw millions from his company over the years;
- vast amounts of SARs that potentially ensure further millions from his company;
- the apparant ability to issue shares of his company to family members at will for such relevant assets as sheep farms, rusty old bicycles, used bath tubs etc. etc.
I would consider that many tricks. And the next trick will be to change the company's name to The Tom Cross Benevolent Fund.
Continuing to follow this share and continuing to see it fall. Seems the market does not like the way Cross treats the company as his personal asset. Cross gets millions from the company, his wife gets millions from the company and investors get.......... nothing. Share price halved, and no dividends or buy backs despite a huge cash position. Very much an AIM company run by management for management ( and their families).
TBH, investors like me deserve having the pss taken out of us for making a poor speculative gamble (having failed to researched management's integrity and past behaviour etc. etc.), and worse, then refusing to recognise the error even when the company's operations take a 360* turn into the abyss. We can all live in hope but hope is not generally a great investment strategy.
The weakness comes out somewhere in those 4 investor traits mentioned by CJ.
I have no idea about rare earths, but I do know that markets don't move in a straight line. Gold and silver are up nicely over the past few months and, while the recent dip is a pain if you are a holder, it is normal following such a sectoral bull run. The general market outlook is very poor IMO , world politics are all over the place and interest rates continue to be cut. Thus the optimal choice of allocation for new funds may probably be (to remain in) cash, PMs or PM mining companies (although PM mining companies are not a sure thing in severe market crashes). I remain confident that the PM recovery will continue after this dip and that miners will eventually follow hugely, and have bought up all of HOC, FRES (......), and HGM after recent falls. And will then wait. Fortunately all 4 pay dividends (albeit some very low) - if you have to wait on a share, make sure it is a dividend-paying share.....
If you buy PM mining shares, you have to be patient. For every one year up, there will be 5 years down. Sounds terrible but that's the nature of the beast. It's s pity that FRES is currently the dog of the sector, but every dog has its day.
I have no idea why you guys continue to support a patiently overpaid, self -enriching, value-destroying management but so be it. In case you have not noticed (and I really don't think you have) the share price is now 27p, down from over 44p. So I suggest that you all pray to yout fat-as*ed Deity to actually do something for his $1.6m remuneration package (++) to rectify the matter. So far all I see from your God is gross inaction in any thing but matters concerning his own wealth.
Thanks - but actually I am fully aware of who the female was. It being his wife hardly makes the transactions any better, does it? And if the $198k annual rent was for staying in an apartment in London, that is even worse - at least the Kildare house was a property presumably worth $16m.
Why pay $17k a month for an apartment (....) housing 'staff' in London? No cheaper apartments available? I seem to recall the company making a $7m loss this half-year and yet it blows money like this away - so much for working on behalf of shareholders.
Related party transactions are supposed to be at arm's length - the only arm here belongs to a very greedy OF grabbing all the money he can. If you can't trust management on small things (although I imagine to most people here $198k is quite a big thing), you can't trust them on big things. As said, Nigeria is the perfect location for him.
Likewise I see that the currently-worthless warrants have been extended without explanation.
You don't see a pattern?
Like all LSE/AIM African ventures entered into (ACA, AAOG, SLE), this has turned into a total disaster. Lived in Africa for much of my working life so I should know better, but I keep giving the continent 'one last chance.' And always fail miserably in my investment.
There was a discussion some time back about a property that a bank had tried to repossess in lieu of a $16m failed loan repayment by OF and his mistress ($8m each). Which makes Note 20 to the accounts is interesting:
"The Company holds an option to acquire a property at market value from Mr. Fanning. The option has a remaining life of seven years and six months and the option fee of US$381,000 is included in other receivables (Note 11) and is refundable when the Company either exercises or terminates the option. In 2018 Mr. Fanning was paid US$383,000 rent for the use of this property by the Company of which US$198,000 related to 2018, US$111,000 to the period 1 January 2019 to 30 June 2019 and US$74,000 to the period 1 July 2019 to 31 October 2019 and is included in other receivables (Note 11). "
1. Why would an oil company operating mainly in Nigeria wish to acquire a property in Ireland? Is SLE now into European property speculation? Might be more successful than its oil operations to date.
2. $198k annual rental cost for a house seems somewhat excessive, even in the beautiful Emerald Isle. So houses in County Kildare (not even in Dublin city) generate rents of $17k a month!!!!!!!? Why are we all bothering here - let's buy-to-let in County Kildare....
Are there multiple accounts out there - the (inflated) OF version and the normal version? Because I don't see anything either 'brilliant' or 'highly encouraging' about the following:
- pre-tax profit of $8m for 6 months to 30/6/18 turned to loss of $12m fr 6 months to 30/6/19;
- loan note income down from $23m to $10m;
- a situation exists whereby the company is totally dependent on a single loan to a single entity with one source of income. And because Eroton has been unable to make dividend payments, in turn MLPL has been unable to make loan note repayments without further financial assistance. And as a result, in the words of the notes to the accounts " Due to the inability of Eroton to make dividend distributions, the directors consider that the credit risk has significantly increased since initial recognition..........". How highly encouraging;
- And further, in order stop civil disorder, Eroton has decided to commission an FSO. Last time I looked in Tesco's, these cost more than a bottle of South African wine. Who is going to pay for this major asset, and how will it affect Eroton's ability to pay MLPL in the short run? And if Eroton continues to be unable to distribute to MLPL, how will MLPL pay SLE?